Reviewing Gruma (OTCMKTS:GPAGF) & Armanino Foods of Distinction (OTCMKTS:AMNF)

Armanino Foods of Distinction (OTCMKTS:AMNF) and Gruma (OTCMKTS:GPAGF) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

0.1% of Armanino Foods of Distinction shares are owned by institutional investors. Comparatively, 19.3% of Gruma shares are owned by institutional investors. 30.2% of Armanino Foods of Distinction shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Armanino Foods of Distinction and Gruma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armanino Foods of Distinction	$76.10 million	4.14	$18.80 million	$0.62	16.58
Gruma	N/A	N/A	N/A	$7.16	2.06

Armanino Foods of Distinction has higher revenue and earnings than Gruma. Gruma is trading at a lower price-to-earnings ratio than Armanino Foods of Distinction, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Armanino Foods of Distinction and Gruma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armanino Foods of Distinction	25.06%	47.01%	35.12%
Gruma	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Armanino Foods of Distinction and Gruma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armanino Foods of Distinction	0	1	1	1	3.00
Gruma	1	0	0	0	1.00

Armanino Foods of Distinction currently has a consensus target price of $15.00, indicating a potential upside of 45.91%. Given Armanino Foods of Distinction’s stronger consensus rating and higher probable upside, research analysts clearly believe Armanino Foods of Distinction is more favorable than Gruma.

Summary

Armanino Foods of Distinction beats Gruma on 10 of the 12 factors compared between the two stocks.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.

About Gruma

Gruma, S.A.B. de C.V., together with its subsidiaries, produces and sells corn flour, tortillas, and other related products. The company offers corn flour, snacks and/or cereal, beer grits, and polenta; prepared corn or wheat flours for pancakes, cakes, crêpes, brownies, churros, pizza dough, cachapas, sweet arepitas, etc.; corn and wheat tortillas; tortilla chips, taco shells, and tostadas; flatbreads, including wraps, pita bread, naan, chapatti, pizza doughs, piadina, breakfast breads, and crackers; sauces/dips; palmito; pasta; marinades; and rice and oats. It markets and sells its products under the Maseca, Mission, Guerrero, Tosty, TortiRicas, Rumba, La Cima, Masa Rica, Del Fogón, Delicados, Arroz Luisiana, Tortimasa, Juana, Minsa, Mimasa, Bravos, Tronaditas, and Mexifoods brand names. The company also designs, manufactures, and commercializes machines for production of corn and wheat flour tortillas, and tortilla chips under the TORTEC and RODOTEC names; and designs and manufactures equipment for corn masa flour, such as corn milling machinery, as well as provides engineering, design, and construction services. It provides its products to retail customers, including supermarkets, mass merchandisers, membership stores, and independent stores; food service customers comprising chain restaurants, food service distributors, schools, hospitals, and military; and tortilla manufacturers and corn chip producers. The company distributes its products primarily through independent distributors and wholesalers. It has operations in Mexico, the United States, Central America, Europe, Asia, and Oceania. The company was founded in 1949 and is headquartered in San Pedro Garza García, Mexico.